The Chinese regime has been exporting new cars as “used” to absorb the auto industry’s overcapacity amid low domestic demand and increased tariffs, raising renewed concerns of dumping.
A large number of “zero-mileage” new cars have been marked as used and sold both domestically and abroad in recent years, according to Chinese and international media reports.
Almost all major Chinese automakers are doing this, including Li Auto, whose CEO admitted to the practice in a Chinese media report.
Auto companies and dealers register and license new cars, include them in the “sold” data, and then sell them at low prices through second-hand car dealers. This operation allows car companies to quickly deal with overstocked inventory and recover funds. It also creates a false impression of a robust market….
China’s Auto Industry Exports New Cars as Used, Raising New Concerns of Dumping
